Minister of Public Enterprises, Pravin Gordhan and the government have announced a new strategic equity partner to help save and restructure South African Airways, in partnership with Takatso Consortium.
On Friday, 11 June 2021, Minister of Public Enterprises, Pravin Gordhan announced that the government has found a new strategic equity partner for South African Airways (SAA). This is in a move to help save the embattled airline of the state from its woes. Gordhan has confirmed that the cabinet has agreed to the state owning 49 percent of the stake and for Takatso Consortium, which is the new confirmed partner, to hold 51 percent.
SAA was placed under business rescue in December 2019, in efforts to save the state-owned airline. The process was concluded in April 2021. The minister confirmed that Takatso Consortium consists of Harith General Partners, who are leading investors in African infrastructure and airports. The minister also pointed out that the aim has always been to restructure the airline to ensure that it is viable, agile and competitive.
According to the minister, the transformative agenda of the new partnership includes the state having a “golden share” of 33 percent of the entity’s voting rights and certain areas of national interest. There will be a Black ownership majority, and the Board Chairperson and executive team will be South African. A memorandum between the two has reportedly been signed.
See the post below.
— @SAgovnews (@SAgovnews) June 11, 2021